Government to press ahead with APD rises

5 Dec 2012 by BusinessTraveller

The UK government is set to press ahead with the latest increases to Air Passenger Duty rates in April.

There had been some hope that sustained campaigning against the tax - including the Fair Tax on Flying campaign - might lead to a government rethink, but rates will now increase from April 1, 2013, in line with the previously announced plans.

Band A flights (those up to 2,000 miles) will remain at £13 per passenger for economy tickets, and £26 for all other classes of travel, but Band B (2,001 - 4,000 miles), C (4,001 – 6,000 miles) and D (over 6,000 miles) will all see increases of £2 per economy passenger, and £4 for all other classes of travel.

It means that the top rate of APD will now be £188 for a passenger travelling in premium economy or above on flights over 6,000 miles.

BAR UK, which represents over 80 airlines, said the decision was “unsurprising and self destructive”, and called for the government to “urgently conduct a review into the economic impact of APD”.

CEO Dale Keller, said “The pre-Budget levels of APD could not be justified and the latest increase takes us dangerously beyond the tipping point where the impact can only be negative to the economy.

“The announcement comes as unsurprising from a government that is not listening to the wider industry, or international opinion, and is self destructive to its own objectives of attracting foreign investment and tourism."

Report by Mark Caswell 

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